Nam Cheong Limited, Malaysia’s largest offshore support vessel (OSV) operator, has announced securing RM102.5m in new charter contracts, further cementing its position in the industry. The contracts involve two vessels—a maintenance work vessel and an Anchor Handling Tug Supply (AHTS) vessel—set to commence operations in 2026 with options to extend for an additional year.
The AHTS vessel will be chartered to Offshore Oil Engineering Co., Ltd., a subsidiary of CNOOC, starting in the first quarter of 2026. The maintenance vessel will begin operations in the second quarter of the same year, supporting various offshore oil and gas activities across Southeast Asia. This development increases Nam Cheong’s fleet under long-term charter to 69%, just shy of its 70% target, enhancing revenue visibility and recurring income.
Chief Executive Officer of Nam Cheong, Leong Seng Keat, commented, “These charter contracts underpin our clients’ confidence in the quality of our fleet. Our average vessel age now stands at 9 years, lower than the market average, which provides a long runway.”
The announcement comes amidst a robust offshore activity environment in Malaysia, driven by energy security concerns and Petronas’ aim to sustain domestic production at approximately 2 million barrels of oil equivalent per day through 2028. With a tight OSV supply due to an ageing fleet and minimal newbuild activity, Nam Cheong remains focused on securing contracts that bolster long-term earnings quality and resilience.
